LLQP Segregated Funds & Annuities · Component 3.2 · 25% of the exam
A client asks the agent to hold the signed application and deposit until 'a better market day'. The agent should:
- Decline; applications and funds must be submitted promptly, and holding paperwork to time the market is improper
- BHold it for up to a week, since a short delay at the client's request is a reasonable accommodation that harms no one
- CAgree, since the client owns the money and may decide when it is invested
- DInvest the money personally until the client is ready, so it is not sitting idle in the meantime
Correct answer: A) Decline; applications and funds must be submitted promptly, and holding paperwork to time the market is improper
Prompt transmission is a compliance requirement; delaying to time the market exposes the agent to liability.
Why the other options are wrong
- BAny deliberate delay in submitting applications and funds is improper.
- CHolding paperwork to time the market is improper.
- DInvesting client money personally is serious misconduct.
Exam tip
Submit applications and funds promptly.
Common mistake
Holding cheques in a desk drawer.
What this tests
CISRO competency component 3.2 — Implement a recommendation adapted to the client's needs and situation — which is weighted at 25% of the Segregated Funds & Annuities module. Written against the published curriculum.
More from component 3
- A client's spouse must sign for:
- When the insurer requests additional information after the application (for example, source of wealth for a large deposit), the agent should:
- The implementation of a recommendation involving a switch from one seg fund to another within a contract requires:
- A client wishes to designate a charity as beneficiary of a segregated fund. Implementation should:
- For a deferred annuity implemented for a client, the agent should confirm:
- The agent's record of the implementation should be retained:
Practice the whole Segregated Funds & Annuities module
Timed sets weighted like the exam, and review of every question you miss. Free to start.